A new state report says the rate of underutilized labor in Michigan shrunk at a faster rate than the nation as a whole. However Michigan still lags significantly behind the US in underutilized labor. Underutilized labor includes both the unemployed and underemployed. In quoting the state report, the Lansing-based Gongwer News Service says the underutilized rate of labor in Michigan last year averaged just under 16 percent of the total workforce. That compares to well over 16 percent in 2012.